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Satya MicroCapital Ltd, a Delhi-based NBFC-MFI, has raised about ₹135 crore through Non-Convertible Debentures (NCDs) from impact investment fund manager responsAbility Investments and Swiss impact investor, BlueOrchard Finance Limited.
“ This will enable Satya to achieve its vision of providing financial assistance to 5 million households by the year 2025 with an exponential speed,” Vivek Tiwari, MD, CIO & CEO, Satya MicroCapital Ltd, said in a statement.
About ₹55 crore funds managed by Blue Orchard was disbursed in June and July and the remaining ₹80 crore was made available by responsAbility Investments, the company statement said. This will not only act as a catalyst in socioeconomic upliftment of the MSME sector but will also help in the much-needed economy revival of the country, it added.
LLG Model
This NBFC-MFI offers collateral-free credit to micro enterprises based on strong credit assessment and a centralised approval system. The company has adopted a unique Limited Liability Group (LLG) Model for extending loans and ensuring repayment. The group lending model allows groups of borrowers to share the liability and responsibility to repay loans, while helping them build a strong credit profile to avail finance from traditional financial institutions.
Through the model, the company aims to add a social touch to lending by integrating modern technology into the micro finance industry. Satya primarily caters to women who own businesses or are looking for business expansion.
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